Guest Post: "Gold and Silver Stand-Off: Demarketing and Deep Value", by Paul Mylchreest

Tue, Jul 14, 2015 - 10:22am

"The demarketing of gold may be close to running its course as it seems that sellers of paper gold instruments are attempting to induce one more sell-off to fully cover their diminishing short positions. Indeed, signs are emerging that the long Nikkei/short gold trade, which has done so much damage to gold’s price, is becoming problematic." -- Paul Mylchreest

Longtime readers will recall that my friend Paul and I both discovered the link between the yen and gold late last year. Working independently, Paul put his findings as a Long Nikkei--Short Gold where we've always proposed it's a more straightforward Long USDJPY--Short Gold trade. In the end, it doesn't really matter which vehicle is used as the long portion of this dominating trade. It's clear for all to see now that the BoJ and other central banks have worked aggressively since 2012 to devalue the yen, while at the same time crushing the paper price of gold.

In this new report, Paul gives us an update on his Long Nikkei--Short Gold thesis as well as several other global trends he's been monitoring. As usual, Paul does fantastic work here so it is imperative that you take the time to absorbe all of the information presented below.


The Gold and Silver Stand-Off

About the Author

turd [at] tfmetalsreport [dot] com ()


Jul 14, 2015 - 10:24am



Jul 14, 2015 - 10:33am



Mr. Fix
Jul 14, 2015 - 10:38am



Jul 14, 2015 - 11:05am
2c piece
Jul 14, 2015 - 11:25am


Just confirming what is plain to see directly above. The Fix is in.


For gold they seemed to have found a way to Greece the road to kick the can a little further. In the future they may find other Spainful ways. Eventually they will probably have to be Franc with us. Not sure where the silver will come from. Perhaps JP Morgan, if Butler is correct. 

OK, I apologize in advance

Turd, thank you for bringing our attention to this Great in depth analysis.


Pining 4 the Fjords
Jul 14, 2015 - 11:29am

Thanks, Pining!

4 oz
Jul 14, 2015 - 11:31am
Nick Elway
Jul 14, 2015 - 11:37am

Paul's silver above ground number is bogus

I sent Paul an email with a link to

Where we found and documented 24 billion ounces of silver above ground as of the end of 2012, not the silly 1 billion ounces number.

I trust Paul's non-silver information is better.

edit: Don't get me wrong, there is a good deep-value case for silver. No need to exaggerate.

Jul 14, 2015 - 11:39am
Jul 14, 2015 - 11:48am

Major retail chains shutting

Major retail chains shutting down thousands of stores; are you prepared and self-reliant?

Take a look at the following list of companies that have announced upcoming store closures:

  • Abercrombie & Fitch: 180 stores (by 2015)
  • Aeropostale: 75 stores (through January 2015)
  • American Eagle Outfitters: 150 stores (through 2017)
  • Barnes & Noble: 223 stores (through 2023)
  • Body Central/Body Shop: 265 stores
  • Bottom Dollar Food: 66 stores
  • Build-A-Bear: 25 stores (through 2015)
  • C. Wonder: 32 stores
  • Cache: 21 stores
  • Chico's: 120 stores (through 2017)
  • Children's Place: 200 stores (through 2017)
  • Christopher & Banks: 17 stores
  • Coach: 70 stores (fiscal 2015)
  • Coco's/Carrows: 70 stores
  • Deb Shops: 300 stores
  • Delia's: 92 stores
  • Dollar Tree/Family Dollar: 340 stores
  • Einstein Bros. Bagels: 39 stores
  • Express: 50 stores (through 2015)
  • Frederick's of Hollywood: 31 stores
  • Fresh & Easy Grocery Stores: 50 stores
  • Friendly's: 14 stores
  • Future Shop (Best Buy Canada): 65 stores
  • Golf Galaxy: 54 stores (by 2016)
  • Guess: 50 stores (through 2015)
  • Gymboree: 26 stores
  • JCPenney: 40 stores
  • Jones New York Outlet: 127 stores
  • Just Baked: 10 stores
  • Kate Spade Saturday & Jack Spade: 28 stores
  • Macy's: 14 stores
  • Office Depot/Office Max: 400 stores (by 2016)
  • Pep Boys: 63 stores ("in the coming years")
  • Pier One: 100 stores (by 2017)
  • Pick 'n Save: 20 stores (by 2017)
  • Radio Shack: 1,784 stores
  • Ruby Tuesday: 13 stores
  • Sears: 77 stores
  • SpartanNash Grocery Stores: 10 stores
  • Staples: 55 stores (2015)
  • Target, Canada: 133 stores (bankruptcy)
  • Tiger Direct: 31 stores
  • Walgreens: 200 stores (by 2017)
  • West Marine: 10 stores
  • Wet Seal: 338 stores
  • Wolverine World Wide: 80 stores (2015 - Stride Rite & Keds)

Learn more:

Jul 14, 2015 - 12:23pm

Sheep are awakening?

Watching TV last night--a Christian talk show. People seem to be waking up a bit. They don't talk about the economy with the same vocabulary we do here, but they know something isn't right. The cannot explain why to others persuasively, yet, but they no longer seem to believe the big lie.

Well, at least some of them...

Dr. P. Metals
Jul 14, 2015 - 12:33pm

RE retail store closings

Whew! For a second there I thought you might list a single store that I actually shop at. 

Dr. P. Metals
Jul 14, 2015 - 12:46pm

@Dr J

A Christian show, on TV Eh?...who knew.

Be careful those wolves in sheeps garb.

Edit: those TEE VEE preechers like to play dress up all purdy like while playing Church and feeding you a false prosperity gospel, picking your wallet and planning their next Lear jet Purchase off of eBay. Discernment would be wise.

Dr. P. Metals
Jul 14, 2015 - 12:53pm

It appears

That all commentary even on ZH has now just devolved to absolute comedy:

Before reading it I had the exact same comment as the very first comment posted on that. Lol

Ever since (The very second it was found) the very first tiny gold nugget In all of human history was dug up, it was instantly: hypothecated, fractionalized, leveraged, and/or stolen. Bankers on a gold standard? Lol

Jul 14, 2015 - 12:57pm

Dr P

My advanced degree in rhetoric has given me an extremely sensitive bullshit meter. I can hardly stand to watch some of them. But my wife's mom loves the show, watches it every night, and often calls us telling us to turn on a certain guest... If they can help people wake up, I can almost tolerate their money grubbing, or sales pitches of their overpriced stuff. Interestingly, my best friend is the engineer at one of the TBN (Trinity Broadcasting Network) stations. According to him, the whole organization is laced with incompetent people, or people promoted beyond their abilities. Sincere people, but too many cannot do their job. Perhaps wolves like to keep such people around them? They have cut back staff to the bone, but not their jet-setting ways. I keep expecting him to call and tell me he is out of a job. But TBN keeps surviving. They must have a broad base of viewers like my mother-in-law who keep them financed.

Edit: But perhaps it is not good for our cause to have the backing of awakened sheep from the ignorant masses, unless they buy lots of gold.

Dr. P. Metals
Jul 14, 2015 - 12:59pm

I believe

They share a lot of customers in common with Sears. :)

Jul 14, 2015 - 1:00pm

link between gold and yen?

the yen (one of the USDX currencies) and gold (gold chart) both run against the USD. Of course there are likely frequent correlations.

Temperature and light levels typically run together as well. But correlation is not causation. Otherwise putting your hands over your eyes would make it cold.


Dr. P. Metals
Jul 14, 2015 - 1:09pm


And I thought I had become the most cynical, and then you prove me wrong laugh

Jul 14, 2015 - 1:12pm

Good Greif!

The gold & silver vs BKK charts are right from "Alice in Wonderland"

Would you rather have gold/silver with NO counterparty risk or equity in JPM and their ilk with umpteen trillion derivative risk?

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